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Impact of Say on Pay on Executive Compensation of Firms Listed on the Toronto Stock Exchange

Author

Listed:
  • Sylvie Berthelot

    (UdeS - Université de Sherbrooke)

  • Vanessa Serret

    (IREA - Institut de Recherche sur les Entreprises et les Administrations - UBS - Université de Bretagne Sud)

  • Jessica Sylvain

    (UdeS - Université de Sherbrooke)

  • Michel Coulmont

    (UdeS - Université de Sherbrooke)

Abstract

Unlike in a number of other countries, the United Kingdom and the United States being two examples, SoP is not prescribed by regulation in Canada. To contribute to the debate on the relevance of a regulation adapted to the Canadian context, this article measures the impact of Say on Pay in firms listed on the Toronto Stock Exchange that voluntarily adopted this practice. Based on a sample of 45 firms, the study results show that the adoption of SoP does not improve the pay-performance relationship or lead to lower executive total compensation. These findings therefore raise questions about the effectiveness of Say on Pay as a governance tool.

Suggested Citation

  • Sylvie Berthelot & Vanessa Serret & Jessica Sylvain & Michel Coulmont, 2015. "Impact of Say on Pay on Executive Compensation of Firms Listed on the Toronto Stock Exchange," Post-Print hal-02417538, HAL.
    • Handle: RePEc:hal:journl:hal-02417538
    DOI: 10.5539/ijbm.v10n12p40
    Note: View the original document on HAL open archive server: https://hal.science/hal-02417538
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    References listed on IDEAS

    as
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